National identity and the perceived values of foreign products with local brands

Abstract

Purpose – Based on the intra-national diversity view, this research aims to employ the concept of national identity to explain the consumer's evaluation of foreign product with local brand and the extent of consumer ethnocentrism. It then investigates how product evaluation and consumer ethnocentrism are capable of explaining consumer's perceived value of the product. Finally, it tests the impact of consumer perceived value on consumer willingness to buy. Design/methodology/approach – A sample of 251 consumers of local wine in Vietnam was analysed using structural equation modelling technique. Findings – National identity has positive impacts on product evaluation and consumer ethnocentrism. These two factors together can explain 58 percent variance of consumer's perceived value, which is the key predictor of willingness to buy. Additionally, emotional and social values are found to be important motivators of local wine consumption in Vietnam. Research limitations/implications – The three reflective first-order components of national identity might be alternatively modelled as formative ones. Moderating effect of consumption occasions, consumer knowledge and other social demographics should be investigated. Finally, to compare Vietnamese consumers towards local wine vs foreign wine. Originality/value – Among very few empirical studies about the effects of national identity on consumer's value of foreign product with local brand under a mixed effects of the perceived inferior quality of locally made product and status-oriented consumption behavior, via the full mediation of product evaluation and consumer ethnocentrism. This study also suggests a conceptual distinction between ethnocentrism and consumer ethnocentrism in studies of national identity.